Categories
Education

Breaking Down Bitcoin

BITs and Satoshi: What’s the Difference?

BITs and Satoshi are two denominations of the popular Cryptocurrency Bitcoin (BTC). Just as fiat currencies are broken down into whole units and subunits, such as Euros and Cents, Bitcoin can be distinguished as BITs and Satoshi. The value of BITs and Satoshi are as follows:

  • 1 BIT (or Microbit) =  BIT = 0.000001 BTC – 1 millionth of a Bitcoin
  • 1 Satoshi = SAT = 0.00000001 BTC = 1 hundred-millionth of a Bitcoin

A Microbitcoin, or ‘BIT’ is one-millionth of a Bitcoin. These can be referred to as BITS or through the symbol μBTC. Satoshi is the smallest denomination of Bitcoin (one-hundred millionth of 1 BTC), named after the pseudonymous creator/s of Bitcoin.

Why do we use BITs?

BITs are often used to display funds in online trading accounts. If you open an account using Bitcoin as a currency, displaying your funds in BITs will make it easier and simpler to view. This is because BITs usually show less decimal numbers than Bitcoin. 

For example, if you deposit 0.00085 BTC in your account, this will be displayed as 850 BITs in your wallet.

Other Denominations of Bitcoin

There are other denominations of Bitcoin, although these are less commonly used and will not appear on your trading account. These include 

  • Millibits (0.001 BTC) 
  • Centibits (0.01 BTC) 
  • Decibits (0.1 BTC)
  • DecaBit (10 BTC)
  • Hectobit (100 BTC)
  • Kilobit (1000 BTC)
  • Megabit (1000000BTC)
Categories
Education

PIP – Percentage In Point

PIP Definition and Examples

A Percentage in Point, usually called a ‘PIP’ in trading, represents the price movement in a currency exchange rate. A PIP is a very small measure of change in a given currency pair, and is measured and presented as a quote. 

Most currencies are quoted to the 4th number after the decimal point, and a PIP represents the last of those numbers. Therefore 1 PIP = 0.0001 of a currency. In an exception to the rule, all Forex pairs containing JPY are only quoted to the second decimal number. So in USD/JPY, 1 PIP = 0.01 of the given currency. 

Why are PIPs Important?

Even though PIPs represent a very small movement in price, a slight change can result in large price swings when trading Forex with high-leverage. Since PIPs are small in value, Forex is traded using micro lots, mini lots or lots, representing 1,000, 10,000 or 100,000 units of the currency being traded respectively.

There are three things that determine the value of a PIP:

  • The currency pair being traded
  • The size of the trade
  • The exchange rate of the currency pair

For example: GBP/USD

If the current market price of GDP/USD is 1.30000 and you have opened a micro lot trade with 1000 units of the currency, the value of one PIP will be calculated as follows:

(1 PIP/exchange rate) x lot = PIP value

(0.0001/1.30000) x 1000 = 0.0769

Therefore, for each movement of 1 PIP, the trader would earn or lose 0.0769 Pounds.

Fractional PIP Pricing

To make price quotes more accurate, LonghornFX also includes a 5th decimal place in Forex currency pair prices. This is called a ‘Fractional PIP Price’, which is valued at 0.00001 of the quoted currency. Fractional PIPs are used to provide traders with more precise quotes for price fluctuations.

Categories
Deposits and Withdrawals

Third Party Bitcoin Deposits

  1. Click ‘Deposit Funds’ under ‘TRANSACTIONS’ on the Dashboard
  2. Click ‘Bitcoin via Instacoins’ as your chosen deposit method 
  3. Under ‘Select a Wallet’ choose which currency you would like to store funds. Choose from GBP, EUR, USD and BITs. 
  4. Enter the amount you wish to deposit
  5. Click ‘Deposit’
  6. You will be redirected to a screen asking you if you wish to proceed, please press ok to continue.  
  7. You will be redirected to Instacoins.com where you can either create a new account or login in to your existing Instacoins account.  
  8. You will be required to complete KYC verification once logged in to Instacoins, if you have not already done so. Should you experience any difficulties during this step, kindly contact Instacoins 24/7 support for assistance. 
  9. Once you have completed KYC and made a successful purchase on Instacoins, you will need to authorise the transfer of these funds to your LonghornFX account.  
  10. After authorising the transfer from Instacoins, the funds will pass through the Bitcoin Blockchain to be confirmed and shall then reflect in your chosen LonghornFX wallet, ready for trading. 
Categories
Deposits and Withdrawals

Credit and Debit Cards Deposits

LonghornFX is proud to offer traders flexibility in their deposit options by facilitating deposits via Credit/Debit card. 

Getting started!

  1. Click ‘Deposit Funds’ under ‘TRANSACTIONS’ on the Dashboard
  2. Click ‘Visa/Mastercard’ as your chosen deposit method
  3. Choose which currency you would like to store funds. Choose from GBP, EUR, USD and BITs.
  4. Enter the amount you wish to deposit
  5. Click ‘Deposit’
  6. Click ‘Proceed to *Instacoins to make a deposit
  7. Follow the prompts on the screen to complete your payment
  8. Once the transaction is confirmed, return to https://longhornfx.com/
  9. Go to Dashboard to see wallet balances at anytime

Once your deposit has been approved, you can go ahead and create an MT4 trading account. 

To credit your MT4 account, please perform an internal transfer from ‘Internal Transfer’ under your Dashboard.

  * Instacoins is a regulated third party payment provider which facilitates buying Bitcoin via Credit/Debit card to deposit into your LonghornFX account. When using the service for the first time, please allow up to 10 minutes to register. Returning verified users can deposit again at the click of a button.